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B61/100FDD 2025

Vicious Biscuit — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
South Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial distress or structural issues at corporate level
  2. 02MINOROnly 9 units system-wide with unknown growth trajectory — suggests stagnant or declining franchise model
  3. 03MEDNet Income not disclosed in FDD Item 19 — prevents realistic ROI analysis on $799K-$1.3M investment
  4. 04HIGHLitigation involving founder/operators (McLaughlin) settled for $45K in 2022 — raises governance and transparency concerns despite non-operational claim
  5. 05MINORHigh capital requirement ($799K-$1.3M) against modest average unit volumes ($1.59M) — payback period likely exceeds 5+ years with 5% royalty drag
  6. 06MINORProtected territory language vague — no clarity on territory size, customer density, or competitive buffer

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.